Problem 19-1 The following information is available for Ayayai Corporation for 2017. 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $122,000 This difference will reverse in equal amounts of $30,500 over the years 2018-2021. 2. Interest received on municipal bonds was $11,000. 3. Rent collected in advance on January 1, 2017, totaled $63,900 for a 3-year period. Of this amount, $42,600 was reported as unearned at December 31, 2017, for book purposes 4. The tax rates are 40% for 2017 and 35% for 2018 and subsequent years. 5. Income taxes of $331,000 are due per the tax return for 2017. 6. No deferred taxes existed at the beginning of 2017. Compute taxable income for 2017 Taxable income for 2017 $ SHOW LIST OF ACCOUNTS LINK TO TT LINK TO TEXT LINK TO TEXT Compute pretax financial income for 2017. Pretax financial income for 2017 $ Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2017 and 2018. Assume taxable income was $932,000 in 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 2017 2018 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT Prepare the income tax expense section of the income statement for 2017, beginning with "Income before income taxes." (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Ayayai Corporation Income Statement (Partial) $ $ Open Show Work Click if you would like to Show Work for this question: SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT